Is the Auto Sales Profession for Me?

british_rover

One of our Volvo stores has a C30 now. I saw it on the way home from work this evening.

Land Rover had cut our sales objectives for the end of the year and is cutting back on production some in anticipation of the forthcoming sale of LR/Jag.

mackabee

Time to sell used cars!
Mack

british_rover

We only have about 15 of those.

kyfdx

That's easily remedied.. Head for the auction!!

british_rover

We rarely buy cars at auctions.

We get cars off the lease return system which is kind of like an auction. We also be direct from other dealers.

im_brentwood

That's weird for Volvo.. I figured you guys would have had the 08s in since June... heck, I leased my 04 T6 in May of 03.

volvomax

We got a trickle of cars,mostly for loaner service.

Typically, the new Volvo's arrive in the fall.
The last couple of years,the Swedes have been building the next model year prior to going on vacation in July.
Usually,they wait until August to begin the next years production.
Looks like this year we are back to normal.

oldfarmer50

"...We get our cars off the lease return system..."

Haven't you heard? People who lease often don't change the oil for YEARS! At least that is one claim.

I always wondered, since people who lease are charged for excessive wear, wouldn't the first thing you check be the routine maintaince?

im_brentwood

Eh?

Bollocks. I change my oil.. many people do. The trick is that you buy the cars that you know.

british_rover

Exactly we usually buy cars that were leased from our dealership and then turned in at our dealership.

Also Land Rover has Pre-Paid maintenance, similar to BMW, but the intervals are only 7,500 miles not 10,000-15,000 miles.

We can check a car to see if all its services were done on time before we buy it.

isellcars1

I have been in the business for more than ten years, and at my current place for three. I can keep selling highline domestic vehicles or go to work for Mercedes. I live in a big city and our local Mercedes dealer is about to open up a second store.

Given the looming recession, I'm not sure what the better choice would be; stay where I am at or go for the opportunity that may not be offered to me again.

I guess what I am trying to figure out is which brand will be more beneficial to me for stability and financially. Locally, the Mercedes store has always been "The Place" to work if you could get a job there.

Any informed opinions would be appreciated. Thank you for your input!

joel0622

I would say that would depend on if your current customer base can carry you through what ever is to come with the economy for the next year.

If you do a high volume of repeat then you are recession proof to a point. Meaning you can make it through the lean times not as well as you would like but you can survive.

If you think you can move and keep your base then go for it. If you think your base won't follow you then stay put.

If you are a lot lizard and don't work a base then it really does not matter where you are selling, just stay/go where you can get the most traffic.

Don't forget the 3 D's

Draw
Demo
Day off

How do they compare store to store.

volvomax

Are you selling Caddys? Or Lincolns, Buicks?

As Joel said, a lot is going to depend on your abilities with your customer base.

Obviously, the Benz dealer thinks there is enough business to open a second store. Traditionally, true highline dealers have been recession proof.

isellcars1

You said, "Traditionally, true highline dealers have been recession proof." That really settles my nerves a great deal, but would you please tell me how you happen to believe that to be true? I'm really trying to make an intelligent comparison and it sounds like you could really help me. Do you have any data that I can reference? Thanks again!

jipster

Who do you have buying highline? The upper middle class to upper class. A recession isn't going to keep those with money from buying. Much more likely to affect the middle class to lower... that's my educated guess.

volvomax

Only data I have is 16 yrs in the car business.

As Jip pointed out, people with money tend to buy when they need to,regardless of what the economy is doing.
The Mercedes clientele tends to be wealthy,aside for the C Class buyers.

The challenge is going to a Benz store without a clientele of your own and without experience in highline import sales.
Benz buyers are different from domestic buyers

micosilver

How good is your client base? If you have a lot of repeat and referrals - you will have to start fresh with Mercedes, and this is the only downside in it, as I see it.
Highline beats domestic and asian any day of the week - the people are nicer, comission is bigger, less grind.

oldfarmer50

...if car sales is the profession for you? I recently asked a salesman how someone could tell for sure if they had what it takes to be a car salesperson. He said it was simple.

"All you have to do is open the hood of any vehicle and stick your face right into the fan. If you don't mind the pain then you have what it takes to put up with customers."

I thought that was very straight forward.

joel0622

"All you have to do is open the hood of any vehicle and stick your face right into the fan. If you don't mind the pain then you have what it takes to put up with customers."

Absolutely classic.

If we had signature boxes here that would be mine.

danf1

I work in a Benz store. If you have some money saved that can carry you until you get up and running, then go for it. If not, you may want to reconsider. Low volume, high gross can be good, but a Benz customer is different. They will buy exactly what they want regardless of how long it takes to get it. After a while your pipeline is full, but getting it there can take some time.

isellcars1

Thanks Dan. You seem to really know what you are talking about. What would you think if I was in a relatively strong market like Los Angeles or South Florida? Would the move make more sense then? I have a strong customer base but may not be able to convert many of them, as I currently sell domestics. I do better than average where I'm at, but I just don't want to pass on a once-in-a-lifetime opportunity. How long do you you think it would take to become re-established and successful again, considering the current economic outlook and the starting over scenario? It's a really tough call for me and I just don't have enough information to make a good decision yet.

danf1

Don't worry much about the economy. Your typical Benz customer isn't hurt badly enough to keep them from buying a new car whenever they want. It will hurt the Hyundai more than Mercedes. It will take a few months to get up and running fully. How long is up to you. The cars are extremely complex and the customers are very discerning. It can take a couple hours to do a proper delivery on some of the cars. If you are good with maintaining your customer base then you should jump. There are few customers more loyal than a Benz customer if they are treated right. If not they will drop you like a bad habit and not think twice about it. As a whole, I find the customers to be very refreshing. We don't get many difficult customers and most are ready to buy as long as you treat them right.

My best advice to you would be to work the service customers. They will more than likely be buying another one. Once you've driven these cars and become used to the level of service that you get, it would be difficult to switch to any other brand.

isellcars1

I have been in the car business for more than ten years, and at my current place selling American highline vehicles for three. I can keep selling highline domestic vehicles where I am or go to work for the Mercedes dealer. I live in a big city and our local Mercedes dealer is about to open up another location.

Honestly, I do not think that I have a very strong customer base that I could take with me, or even count on for much future business where I am now. Considering the current economy and the expected recession, I'm not sure what the better choice would be. Should I stay where I am or go to work for Mercedes?

Help me with this, please. Your informed opinions would be appreciated. Thank you for your input!

venture

What's to stop you from going back to the dealership where you are now if it doesn't pan out?

If you are making them money, and can continue to do so, I can't see any owner not allowing you to return.

If you don't do it, you will kick yourself forever. Opportunity lost.

micosilver

What worries me is that you have been selling cars for 10 years at the same dealership, yet you don't have a customer base. If you are not very good in sales - you still can sell cheap cars, but you won't be able to sell high-end.

joel0622

What worries me is that you have been selling cars for 10 years at the same dealership, yet you don't have a customer base. If you are not very good in sales - you still can sell cheap cars, but you won't be able to sell high-end.

The absolute best sales person from a numbers stand point we have ever had never worked his base. He was a lot lizzard. He actually let another sales person who was real good on the phone work his base and they split the deal.

This guys key to success was that he did a walk around with every customer and had the ability to get everyone on paper.

He was 15-20 unit guy a month every month. Wish I had his skills when I was selling.

madmanmoo

You definitely have to have a specific skill set to work your customer base. I've noticed a number of guys who are very successful who just choose to work the fresh ups. That being said, imagine what their potential could be if they did work sold customers as well.

-moo

isellcars1

Thanks for your thoughts. Just three years at my current place, and no strong base to count on whether I stay or go, as best I can guess. I am a good salesperson with nearly a 100% CSI. Currently, I am very comfortable with my surroundings, but I don't want to miss out on a better opportunity even if it means starting over, kind of. It's a really tough decision because I am stable and doing just fine where I'm at. Help!!! :sick:

asylum575

Been kicking around the idea of selling cars. I'm about 2 years away from civil sercice retirement with a very nice pension. I'll be 44 years old. Wife works full time and we have two young children. The hours are something I've been dealing with for 20 years, so it wouldn't be a big adjustment. Just wondering what would be reasonable to make first year in a large market like the greater NYC area.
I enjoy shopping for cars, I do it on a regular basis. Just figured all the reasearch I do can be used to make money too. Any input or suggestions are appreciated.

micosilver

Just do it. What is the worst that could happen? You will have to ask for your old job back?
Plus you might be able to negotiate some type of salary for the first few months, if they really want you.

nates02gt

I am currently looking at changing careers and being in car sales seems like it would be something I would enjoy. I have enjoyed selling since I was a kid. My biggest concern is finances. I am currently making about 4k a month plus benefits. I am just concerned about being able to make close to that much on average starting out. I am in Las Vegas and am looking at working for a Mazda dealer. I know about the long hours, dead days, ups and downs of pay, rejection and all that. Does anyone have any input on how I would most likely do financially if I was a motivated and educated salesman? Thanks for your help.

volvomax

Frankly, you are probably gonna struggle your first few months in the car biz.
Mazda isn't a particularly strong brand, and it takes time to learn the business.

I'd try for a Honda, Toyota or Hyundai store.

micosilver

Do you know what pay plan they offer? Mazda is a good brand, but it is hard to make profit on them, so you have to make sure that your pay plan will include unit bonuses do you know what they ar? How much is the "mini" at the dealership?
You should be able to sell 12 units a month, but you have to know how much that will pay you. For example, at our Mazda dealership, mini is $225, unit bonus for 12 cars is $750, so your pay for 12 units without any profit will be $3,450 gross, woudld that be enough for you?

nates02gt

I am not sure what pay plan they offer. I will have to talk to them to find out all that info. I could scrape by on $3450. The reason I am looking at the Mazda dealer is because I bought my last car from them and like the way they do their business.

micosilver

Then you should be very successful: you like the product, you own a Mazda, and if you feel that it is a good place to work - just go with your instincts; within 3 months you should be making over $5,000 a month.

oldfarmer50

"...Does anyone have any input..."

I would suggest that you read through some of the "Sales Frontline'', 'Saleman Mislead Me" and "Purchasing " boards. Pay particular attention to those posts from the non-sales people. They will give you a good idea of what to expect from the worst grinders and nut jobs who are likely to enter your dealership.

If after reading these posts you can resist the urge to kill someone, you may have what it takes to be a successful salesman.

nates02gt

I did read 'confessions of a car salesman' and 'stories from the front lines'. I believe that just like with almost any other business or organization out there, that there are bad business practices at many dealers. That is what I want to stay away from. I believe there is a fine line between making money and taking advantage of people. I would much rather have repeat customers and referrals from good and honest selling than have to always be looking for new 'ups'. I have been looking into Honda and Toyota as well. I think between the two, I like Toyota the best. Does anyone have any experience working for any Toyota or Mazda dealerships in the Las Vegas area? Thanks again for all your input.

volvomax

The salespeople who are making $100,000(and there are damn few of them) aren't just pushing cars out the door for mini's.
Gross profit drives commisions. Not just units.
If you are just giving cars away, or your store doesn't allow you the opportunity to make gross, then you aren't going to make anymore than you are making.

Finally, it's a real myth that floor salespeople make 6 figures anymore.
The few that do are usually in a high line store.

kingofthering

I made more selling low end than i have high end .The high end is more laid back :shades:

grnerd

I am considering a new career in car sales. I live in Grand Rapids, MI, and went to an open interview at the local Toyota/Scion dealership. The interviews and training are being held by TK Worldwide. The guy who interviewed me today was very "salesman", and did not spend a whole lot of time asking questions. Nice enough guy, though. He told me after just a few minutes that "he knows what he is looking for, and that I had it". Sounds like a pitch to me.

There is a 3 day training, for which we pay $300, and that the fee is refunded after 90 days of employment. Understandable insurance to entice you to stick it out.

My concern is, of course, how much potential is is there realistically in new car sales in Michigan, considering the state of the economy? Am I just blocking out the obvious pitfalls in my search for a new career?

boomchek

I'd be weary of any place that charges you for training. Find out exactly what kind of training this is, whether it's general auto sales training, or something specific to that store.

If it's store specific and a requirement to work there, then they shouldn't be charging you in my opinion.

oldfarmer50

"...Sounds like a pitch to me..."

Sounds like a scam to get $300 from you. Who is TK Worldwide? Do they guarantee you a job at this dealership after your "training"? What happens if the dealer cans you before the 90 days are up?

This kind of deal seems to reappear every time there is a recession and people who are desperate let their guard down. I remember back in the 70's I was out of work and ran into a similar offer. This company would train you to sell hospital air filters which were "the best in the business". The fact that they conducted their interviews in the back of a vacume cleaner store made me think twice about the offer.

Get all the details before you sign the check.

jproc

I'd run from that place fast.Economy is bad people are out of work and some losers will try and take advantage of desperate people.Training should be either free or you get paid a minimal amount while undergoing it.

I lost my job back in may-did some training to be a limo driver and got paid minimum wage.Found out I hated being a limo driver and became a school bus driver.Basically the training there was free although I did get $ 250 when I completed the course

oldfarmer50

"...Found out I hated being a limo driver and became a school bus driver..."

LOL. As a school bus driver myself, I find that very funny. If you think that the fat cats in the limo can be a pain, wait until you have a go-round with some spoiled brat and his obnoxious parents. I wish you luck, you'll need it.

Your post did jog my memory Re: the OP's question. I think that in many states, charging a fee for training is illegal. Way back when I trained to be a bus driver they did not pay you but these days the law says you have to be paid at least minimum wage. I think that is true for most jobs where training is involved. I'm in NY state so this may not apply to all places.

joel0622

Its not a scam, its not a rip off, its legit. That is the way many dealers in our area recruit new sales people. We have done it several times. They do the interviews, they do the training, at the end of the third day we interview who ever is left and tell them who to hire. if we really like the recruit and they don't have the dough then we front it for them.

You would be amazed how much riff raff $300-$400 will keep away.

boomchek

I guess you could put it that way.

at the end of the third day we interview who ever is left

So people actually pay $300 and then not finish the training, or they get kicked out?

joel0622

You don't have to pay the $300 until the third day. On the third day the interviewer/trainer tells us who he likes, then we interview and see who we like, then he collects the $300 from the folks we want to hire. Those who we don't want to hire he trys to pitch to them that they can still pay the $300 and his company will place them in another dealer.

He usually ends up with about 10 in his class, 5 of them are worth a flip and after all the smoke is cleared 90 days later we end up getting one maybe two good people out of it.

They don't really like our store because we are particular about who we hire. They like to go to stores that do cattle calls and hire every one that comes in.

Here is the folks we use

link title

boomchek

I guess that makes sense. I still wouldn't pay if that was a requirement to get hired.

Although when I got into the biz with 0 experience, I did take a week long general car sales course (not affiliated with any dealer groups or brands) and it cost me about $1100. I did it mainly to learn about the industry. The school I took does sales and leasingcourses, business office, and also service advisors and tech training.

bolivar

Ah, overall, somewhat like an employment agency, but one that gives some initial training and evaluation.

bvdj84

Although legit, I would never apply for a job that I would have to pay to get trained. You should be paying me. Obviously, there should be an interview process. This would go over their credentials. I would having experience in customer service as the main requirement for the job. Experience in the field is key. Personally, that is the deal in hiring. You have this, and the rest will fall right into place.

There are many that should not be in this kind of field, because they cannot handle themselves very well. In my experience, many salesmen I have worked with, they come across extremely fake, overly done and desperate. Although, last spring, I had a salesmen treat me very well. I took my time and he was very kind. I bought 2 cars off of him. In management, I would be extremely strict in hiring. The employees must be able to show superb customer service skills. Never, would I let a salesmen let anyone walk out on my showroom upset. My point is, you cannot stand the heat, get out of the kitchen. You are on the front line, you must show your best behavior, respect people. Because, remember, we all at some point been on the customers end, and know exactly how it feels. I have no sympathy when salesmen get offended when we are blunt about this. They created this bad reputation all on their own.

My point also is, that I am sorry you run your business on a commission based system, that really as a customer is not my problem, or does it matter how you are paid. You have a problem with this, you need to talk to your boss or get a normal job. Dealers could eliminate this rep if they got rid of the commission, and went to salary. This is no way to do business without anyone getting their feelings hurt, also its all about the customer, but yet we often get the short end of the stick. We customers always come out last in the any sale! We drive off in our new car, you go, alright!!! $$$ However, I do not expect you to take a loss on the deal. Do not make me feel bad, or throw up in my face that you are getting nothing on the deal. Not my problem. You chose the job that you are in. If you deny me the deal, well, I'll get it from somewhere else. For me, I just want a clean and fair deal, not robbery. Though, dealers legally rob everyday! Well, legally? hmm... we won't go there... lol Wow I am on a role.

It is exactly like this, I ordered from a restaurant, had it delivered, $2.00 delivery charge. Then, asked me if I wanted to put the tip on now or when the driver got to me?.... Well, I told him, I am sorry you do business that way, I gave him $1.00.
This place is already getting $2.00 to deliver, sorry driver, but you need to tell them to give you the $2.00 for you driving it to me. This is not my problem. $2.00 for delivery, and yet you still want tip. It all comes down from a customers point of view, I am sorry you do business that way.

The same as a dealership, You chose to be commissioned. You chose to work there. Not my problem. I am only saying all of this, because I have seen so many salesmen, that literally scream out desperate the minute I hit the dealer lot. Here is a $20 for some food, will you back off?

haha... wow!! Garbage! :lemon: